AI faces whopping Rs 43,777 crore debt

The total debt of cash-strapped Air India, consisting of aircraft and working capital loans, is Rs 43,777 crore (Rs 437.77 billion) and the government has infused Rs 3,200 crore (Rs 32 billion) equity to help the airline, Civil Aviation Minister Vayalar Ravi said on Thursday.

"The total debt of Air India, consisting of aircraft loans and working capital bank loan aggregates Rs 43,777.01 crore. The working capital loan is Rs 21511.10 crore (Rs 215.11 billion) while the aircraft loan is Rs 21412.06 crore (Rs 214.12 billion)," Ravi informed Rajya Sabha in a written reply.

Apart from it, the beleaguered national carrier owes Rs 3,777 crore (Rs 37.77 billion) to airport operators, oil marketing companies, other vendors, interest on working capital loan, interest of IDBA aircraft loans and employee's wage.

"Air India owes Rs 2,300 crore (Rs 23 billion) to public sector oil marketing companies, Rs 480 crore (Rs 4.8 billion) as interest on working capital loan, Rs 200 crore (Rs 2 billion) as interest on IDBA aircraft loans, Rs 350 crore (Rs 3.5 billion) towards employees wages, Rs 367 crore (Rs 3.67 billion) to other vendors and Rs 75 crore (Rs 750 million)

to airport operators," Ravi said.

The national carrier has registered a loss of Rs 5548.26 crore (Rs 55.48 billion) during 2008-09, Rs 5552.44 crore (Rs 55.52 billion) during 2009-2010 and Rs 6994 crore (Rs 69.94 billion) (provisional) during 2010-11.

He said that the government has infused fresh equity of Rs 3,200 crore (Rs 32 billion) to help the national carrier.

The airline has prepared a turnaround plan and financial restructuring plan, on the direction of Group of Ministers, which was examined by the Group of Officers.

"The recommendations of GoO have been referred by the GoM for RBI's review and regulatory forbearance on the FRP," he said.